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Asian Tribune is published by E-LANKA MEDIA(PVT)Ltd. Vol. 20 No. 78

The Ideal Economic Model for Third World Countries:.......

[b]The Ideal Economic Model for Third World Countries: Open or Closed [/b]

By Garvin Karunaratne, Ph.D.(Michigan State University)

[b] The Colonial Period[/b]

As colonialism was gradually disbanded in the Forties and Fifties many colonial countries were bequeathed with independence, provided with democratic constitutions for governance and allowed to rule themselves. The fundamental aims of the colonial regimes was to maintain law and order, the collection of taxes and to restructure the economies so that the colony would make a contribution to the mother country. The economic system imposed was to produce raw materials for export to the mother country and other Developed Countries and purchase manufactured items from the mother country. This system enabled the mother country and other Developed Countries to sell their manufactures, helped to keep their people employed and also enabled the creation of wealth in manufacturing goods. The colonies were exploited to the maximum with wealth flowing to the mother Superpower.

[b]The Post Independence Period[/b]

When the countries became independent they commenced various types of programs to enable its people to become productive, to manufacture all that they need, thereby to provide employment for their people. Land was distributed and irrigation schemes were constructed. Extension departments were established to offer advice to the people to become productive contributors to the economy by producing what was required. They followed a policy of import substitution aimed at self sufficiency. They built up administrative systems to control the foreign exchange they earned from exports and used it in the interests of their countries. They were all moving fast towards being developed-finding employment for their people and enabling production.

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